New Delhi: The government has started an anti-dumping probe into a select Chinese polyester yarn following complaints from SRF Ltd and Reliance Industries.
The Directorate General of Anti-dumping and Allied Duties (DGAD), under the commerce ministry, has "sufficient" evidence of dumping of 'high tenacity polyester yarn' from the neighbouring nation.
SRF Ltd and Reliance Industries have alleged dumping of the yarn and asked for an investigation into the matter. If established that dumping has caused material injury to domestic players, the DGAD will recommend imposition of anti-dumping duty.
Anti-dumping duties are levied to provide a level playing field to local industry by guarding against cheap, below-cost imports.
The probing authority "hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry", the DGAD said in a notification. The investigation will cover the period from April 2016 to March this year. These yarns are used for manufacture of tyre cord fabric, seat belt webbing, slings, ropes, coated fabric and conveyor belt fabric.
Increasing imports and dumping of goods from China have always been an area of concern for Indian companies. Exports to China were only USD 9 billion in 2015-16, but imports totalled USD 61.7 billion in the fiscal. The DGAD is also probing dumping of several other products such as chemicals from China.
India is one of the most attractive markets for global producers due to its large middle class population. Imposition of anti-dumping duty is permissible under the World Trade Organisation (WTO) regime. Both India and China are members of the Geneva-based body....